This Presentation gives the liabilities (punishments, penalties etc) that a Director of an Indian company faces when the company defaults under the Companies Act 2013 (As amended by The Companies Amendment Act, 2020).
Joint Ventures in India - Options, Regulations and Restrictions for Foreign C...Anil Chawla
This mini-book throws light on the options available to foreign companies when entering into joint ventures in India. It examines the various options with reference to different needs of foreign companies. It also gives in brief the sector-wise restrictions imposed by Government of India in relation to foreign direct investment. The Fourth edition has a special section about formation of joint ventures for participating in government tenders.
The document discusses key aspects of joint ventures including:
1) It defines a joint venture as a strategic alliance between two or more firms to share resources and capabilities.
2) It covers classification of joint ventures under Indian law and primary goals such as extending market reach.
3) Key factors involved in structuring a joint venture deal are discussed such as understanding FDI rules, conducting due diligence, and obtaining necessary regulatory approvals.
The document discusses recent amendments to the Companies Act of India through ordinances and rules related to significant beneficial ownership. Key points include:
- The Companies (Amendment) Second Ordinance, 2019 decriminalized certain offenses and increased certain penalties.
- Specified companies must file returns on payments to micro and small enterprises suppliers using the MSME Form to increase transparency.
- Individuals who hold a beneficial interest of 25% or more in a company, or have significant influence over it, must declare their interests to the company under new significant beneficial ownership rules.
The document discusses the key steps and considerations for forming a joint venture in India.
1) The joint venture company must be incorporated with regulatory bodies like ROC.
2) Partners will make inter-corporate investments in the joint venture company according to Section 372A of the Companies Act.
3) Various regulatory approvals are required depending on the industry and foreign investment percentage.
4) Important clauses in the joint venture agreement address issues like control, confidentiality, contributions of each partner.
Companies Act 2013 : Loans, Advances and Related Party Transactions (Sec. 185...Chintan N. Patel
The document discusses loans, investments and related party transactions under the Companies Act 2013.
It summarizes the key provisions around loans to directors (Section 185), loans and investments by companies (Section 186), and related party transactions (Section 188).
Section 185 prohibits a company from providing loans to its directors or entities related to directors. Section 186 specifies limits and procedures around loans and investments by companies. It requires prior approval by special resolution for certain loans and investments exceeding thresholds. Section 188 requires prior approval of related party transactions if they exceed specified limits and are not at arm's length.
Cross border merger and acquisitions in india with special reference to femaFarhan Neguive
This document discusses inbound cross-border mergers and acquisitions (M&As) in India and how they are regulated under the Foreign Exchange Management Act (FEMA). It notes that FEMA and related regulations govern foreign investment in India and allow non-residents to purchase shares of Indian companies under the Foreign Direct Investment Scheme. It also discusses rules for rights issues, share transfers, and M&As involving share issuances to non-resident shareholders under FEMA. Inbound M&As are an important type of foreign investment in India that FEMA aims to facilitate while regulating cross-border financial flows.
The document discusses the key provisions around acceptance of deposits and issue of securities by companies under the Companies Act, 2013. It provides 10 exclusions for what does not constitute a 'deposit' according to the Act. It also outlines the conditions stipulated under Section 73 for a company to accept deposits from members, including issuing a circular, maintaining a deposit repayment reserve account, and obtaining credit ratings. Specific additional conditions are provided for eligible companies to restrict the amount of deposits accepted.
Section 185,186,188 of companies act, 2013arpit1314
The document discusses related party transactions, loans to directors, and loans/investments by companies under the Companies Act 2013. It defines related parties and key managerial personnel. It outlines the limits and approval processes for related party transactions involving sale/purchase of goods, property transactions, service contracts, and appointments. It also discusses the provisions around loans to directors and other persons in whom a director is interested, and the penalties for non-compliance. Finally, it covers the limits, approvals and disclosures required for loans and investments made by companies.
Joint Ventures in India - Options, Regulations and Restrictions for Foreign C...Anil Chawla
This mini-book throws light on the options available to foreign companies when entering into joint ventures in India. It examines the various options with reference to different needs of foreign companies. It also gives in brief the sector-wise restrictions imposed by Government of India in relation to foreign direct investment. The Fourth edition has a special section about formation of joint ventures for participating in government tenders.
The document discusses key aspects of joint ventures including:
1) It defines a joint venture as a strategic alliance between two or more firms to share resources and capabilities.
2) It covers classification of joint ventures under Indian law and primary goals such as extending market reach.
3) Key factors involved in structuring a joint venture deal are discussed such as understanding FDI rules, conducting due diligence, and obtaining necessary regulatory approvals.
The document discusses recent amendments to the Companies Act of India through ordinances and rules related to significant beneficial ownership. Key points include:
- The Companies (Amendment) Second Ordinance, 2019 decriminalized certain offenses and increased certain penalties.
- Specified companies must file returns on payments to micro and small enterprises suppliers using the MSME Form to increase transparency.
- Individuals who hold a beneficial interest of 25% or more in a company, or have significant influence over it, must declare their interests to the company under new significant beneficial ownership rules.
The document discusses the key steps and considerations for forming a joint venture in India.
1) The joint venture company must be incorporated with regulatory bodies like ROC.
2) Partners will make inter-corporate investments in the joint venture company according to Section 372A of the Companies Act.
3) Various regulatory approvals are required depending on the industry and foreign investment percentage.
4) Important clauses in the joint venture agreement address issues like control, confidentiality, contributions of each partner.
Companies Act 2013 : Loans, Advances and Related Party Transactions (Sec. 185...Chintan N. Patel
The document discusses loans, investments and related party transactions under the Companies Act 2013.
It summarizes the key provisions around loans to directors (Section 185), loans and investments by companies (Section 186), and related party transactions (Section 188).
Section 185 prohibits a company from providing loans to its directors or entities related to directors. Section 186 specifies limits and procedures around loans and investments by companies. It requires prior approval by special resolution for certain loans and investments exceeding thresholds. Section 188 requires prior approval of related party transactions if they exceed specified limits and are not at arm's length.
Cross border merger and acquisitions in india with special reference to femaFarhan Neguive
This document discusses inbound cross-border mergers and acquisitions (M&As) in India and how they are regulated under the Foreign Exchange Management Act (FEMA). It notes that FEMA and related regulations govern foreign investment in India and allow non-residents to purchase shares of Indian companies under the Foreign Direct Investment Scheme. It also discusses rules for rights issues, share transfers, and M&As involving share issuances to non-resident shareholders under FEMA. Inbound M&As are an important type of foreign investment in India that FEMA aims to facilitate while regulating cross-border financial flows.
The document discusses the key provisions around acceptance of deposits and issue of securities by companies under the Companies Act, 2013. It provides 10 exclusions for what does not constitute a 'deposit' according to the Act. It also outlines the conditions stipulated under Section 73 for a company to accept deposits from members, including issuing a circular, maintaining a deposit repayment reserve account, and obtaining credit ratings. Specific additional conditions are provided for eligible companies to restrict the amount of deposits accepted.
Section 185,186,188 of companies act, 2013arpit1314
The document discusses related party transactions, loans to directors, and loans/investments by companies under the Companies Act 2013. It defines related parties and key managerial personnel. It outlines the limits and approval processes for related party transactions involving sale/purchase of goods, property transactions, service contracts, and appointments. It also discusses the provisions around loans to directors and other persons in whom a director is interested, and the penalties for non-compliance. Finally, it covers the limits, approvals and disclosures required for loans and investments made by companies.
The document summarizes key changes introduced in the Companies Bill 2013 as compared to the existing Companies Act 1956. Some important changes include increasing the maximum number of directors and directorships allowed, introducing provisions for one person companies, CSR requirements for large companies, mandatory appointment of women directors and independent directors, tightened disclosure requirements, and making secretarial standards statutory. The bill aims to facilitate ease of doing business while strengthening corporate governance.
Loans to directors & related party transactions under ca 2013Mallampalli Ruthvik
This document provides an overview of Sections 185, 186, and 188 of the Indian Companies Act, 2013, which cover loans to directors, inter-corporate loans and investments, and related party transactions. Section 185 restricts loans by companies to directors and related parties. Section 186 sets limits on inter-corporate loans and investments up to 60% of capital and reserves. Section 188 requires board approval and shareholder approval for certain related party transactions above threshold values. Notifications have provided some exemptions for private companies. Non-compliance can result in fines and imprisonment for officers in default.
Section 188, 184 & 189 Related Party Transacions & RulesDwarkesh K. Diwan
This document discusses laws related to related party transactions under Section 188 of the Companies Act 2013. It provides details of:
- What types of transactions require board approval and shareholder approval. Board approval is needed for most related party transactions, while shareholder approval is required for larger transactions.
- Consequences if transactions are entered into without required approvals, including them being voidable and directors being liable to indemnify losses.
- Definitions of related party and relative according to the Companies Act.
- Additional rules specified by the Companies (Meetings of Board and its Powers) Rules, 2014 regarding related party transactions, including disclosure requirements.
Powers and Restrictions for companies to make Inter-Corporate Loans or Investments as per the provisions of Section 186 of the Companies Act, 2013 read with Rules 11 to 13 of Companies (Meeting of Board and its Powers) Rules, 2014
Loans & deposits as per new companies act 2013Raghav Madhavan
The document discusses the key changes in the Companies Act, 2013 regarding loans and deposits for companies. Some of the main points covered are:
1) Private companies can now only borrow from directors and financial institutions, removing shareholders and relatives of directors from the list of permitted lenders.
2) Strict limits are placed on accepting deposits, with private companies only allowed to accept from directors. Compliance with additional rules is required to accept deposits from non-directors.
3) Loans to directors and other interested parties are prohibited, with some exceptions. Shareholder approval is required if total borrowings exceed paid-up capital and reserves.
4) Strict rules also govern acceptance of deposits from the public, including
Section 186 of the Companies Act 2013 governs loans, investments, guarantees and security provided by companies. It places limits on such activities and requires prior approval if certain thresholds are exceeded. Companies must disclose full particulars of such transactions in their financial statements and maintain a register containing details of loans, guarantees, security and acquisitions. Certain exceptions apply for banks, insurance companies, housing finance companies and those principally engaged in financing or infrastructure activities. Contravention of this section may result in fines for the company and imprisonment for officers in default.
This document summarizes frequently asked questions about dividend distribution policies for listed companies in India. Key points include:
- The policy requirement applies to the top 500 listed companies by market capitalization.
- The purpose is to provide guidance for boards in declaring dividends and transparency to investors.
- The policy is not mandatory for debt listed companies or a replacement for the board's decision, but rather a reference point.
- Companies must tailor the policy to their specific circumstances and disclose any changes made.
Loan to Directors & Inter Corporate Loansbvcglobal
This document discusses loan provisions for directors and inter-corporate loans under the Companies Act 1956 and 2013.
It outlines that public companies and private subsidiaries of public companies cannot provide loans to directors without shareholder approval under Section 295 of the 1956 Act and Section 185 of the 2013 Act. It also describes restrictions on loans to firms/bodies where a director has interest.
The document also summarizes Sections 372A and 186 regarding inter-corporate loans, specifying approval requirements, exceptions, and penalties for non-compliance. It notes that board approval is sufficient if loan amounts do not exceed ceilings of 60% of capital/reserves or 100% of free reserves, otherwise shareholder approval is required.
This document summarizes Section 185 of the Companies Act, 2013 regarding loans to directors. It discusses the restrictions placed on companies from advancing loans or providing security to directors. It outlines two exceptions for loans to managing/whole-time directors or loans provided in the ordinary course of business. It also clarifies the meaning of "person in whom director is interested." Finally, it summarizes a circular clarifying that Section 372A exemptions still apply regarding guarantees by holding companies for subsidiaries until Section 186 is notified.
Companies act, 2013 related party transactionsRama Krishna
The document discusses key aspects of related party transactions under the Companies Act 2013. It provides definitions of related parties and related party transactions. It covers the rules around loans to directors and other persons. It also discusses the provisions around inter-corporate loans and investments including approval requirements, limits, exceptions and penalties. Key highlights include expanded definition of related parties, prohibition on loans to directors except in certain cases, limits on inter-corporate investments up to 60% of net worth without shareholder approval and maintaining a register of loans and investments.
Section 185 and 186 - Loans and Investments by CompanySaurabh Dugar
Investments by company - Section 185 and 186 of Companies Act, 2013
Procedural Aspects, carve outs, implication of violations, etc.
Have included the probe of the proposed changes of Companies (Amendment) Bill, 2016.
The document discusses various exemptions provided to private companies through a notification issued by the Ministry of Corporate Affairs on June 5, 2015. Some of the key exemptions for private companies include exemption from sections 43 & 47 relating to share capital, exemption from section 188(1) relating to related party transactions, reduced timelines for right issues, ability to purchase own shares subject to conditions, liberalized rules for accepting deposits from shareholders, and exemption from filing certain board resolutions with the registrar of companies. The notification aims to reduce compliance requirements for private companies to make them more efficient.
Exemptions to private companies under companies act 2013 impact analysisFCS BHAVIK GALA
The document discusses exemptions provided to private companies under the Companies Act 2013 that reduce compliance burdens. Key exemptions summarized are:
1) Private companies are exempt from filing board resolutions with the Registrar of Companies, reducing a significant compliance burden.
2) Private companies can purchase their own shares without a reduction in capital, subject to certain conditions like no other corporate investment and borrowing limits.
3) Private companies have flexibility in issuing shares with differential voting rights if allowed by memorandum and articles of association.
4) The definition of related party transactions excludes holding, subsidiary and associate companies for private companies, simplifying approval requirements.
The document discusses key provisions around inter-corporate loans, investments, guarantees and securities under the Companies Act.
1. It defines terms like "loan", "investment", and "free reserves".
2. It sets limits on the board's powers to approve loans/investments of 60% of paid-up capital and free reserves or 100% of free reserves without shareholder approval.
3. Shareholder approval by special resolution is needed for exceeding these limits. Notice to shareholders must provide details of the proposal, body corporate involved, funding sources, etc. No blanket approvals are allowed.
4. An exception exists for guarantees, where the board can exceed limits without
The document discusses recent changes in the Indian bond market that are expected to positively impact its growth. It outlines three key changes: 1) Mandating the use of an electronic book building mechanism for large bond issuances, improving transparency. 2) Allowing listed unsecured corporate bonds, expanding funding options. 3) Draft rules permitting foreign investors to invest in corporate bonds and securitized debt. Collectively, these regulatory changes aim to streamline the market and facilitate its further development.
This document provides an overview of different types of business organizations and structures in India. It discusses sole proprietorships, partnerships, private limited companies, public limited companies, and charitable organizations. For each type of structure, it outlines key defining features, advantages, disadvantages and regulations. It also covers topics like joint ventures, foreign direct investment rules in India, and how a foreign company can enter the Indian market through a liaison office, branch office, joint venture or wholly owned subsidiary.
Rules to follow to set up a Joint Venture with an Indian companyvakilsearch_tutorial
There are three common types of joint venture companies in India: 1) where one party transfers their business to a new company and receives shares, while the other party subscribes for shares in cash, 2) where both parties subscribe to shares in the new company in agreed proportions in cash to start a new business, 3) where an existing company collaborates with a third party who takes shares in the company through cash payment. Joint ventures are incorporated like private or public companies under Indian law. Key issues to address include foreign investment caps, agreement terms, director nominees, office location, and necessary approvals. The joint venture agreement should specify shareholding proportions, decision-making, management structure, funding, and dispute resolution
Research Methodology in Commerce- Corporate Bond Market in Indiapillai college
This document is a project report submitted by Sunita Kumari Yadav to the University of Mumbai for their Master of Commerce program. The project examines the corporate bond market in India, with the objective of analyzing its development and growth compared to other developed and Asian countries. It includes sections on the meaning and types of corporate bonds, the importance of corporate bond markets, the global scenario of corporate bond markets, and the current state and measures taken to develop the corporate bond market in India.
Companies Act, 2013 – certain privileges of private companies withdrawnD Murali ☆
The Companies Act, 2013 – Certain privileges of private companies withdrawn - by Dr S. Chandrasekaran
(Published in Business Advisor dated September 25, 2013)
The document analyzes changes to India's service tax relating to the 2015 Union Budget. Key changes include:
- The service tax rate is increased from 12% to 14%.
- Education and SHE cess are subsumed into the 14% tax rate.
- A new 2% Swachh Bharat cess will be imposed on taxable services, resulting in a total service tax rate of 16%.
- Various penalty provisions and rates are amended.
The secrets to avoiding penalties and fines - Perspectives of HR & FinanceAkash Mahagaonkar V
This is the presentation of 2nd Mini Conference as a part of Relativity's Knowledge Series program at Coimbatore & Bangalore. We introduced "Learning Via Gamification" via this program and was a great success. Participants learn real & live scenarios & nuances of compliance.
The document summarizes key changes introduced in the Companies Bill 2013 as compared to the existing Companies Act 1956. Some important changes include increasing the maximum number of directors and directorships allowed, introducing provisions for one person companies, CSR requirements for large companies, mandatory appointment of women directors and independent directors, tightened disclosure requirements, and making secretarial standards statutory. The bill aims to facilitate ease of doing business while strengthening corporate governance.
Loans to directors & related party transactions under ca 2013Mallampalli Ruthvik
This document provides an overview of Sections 185, 186, and 188 of the Indian Companies Act, 2013, which cover loans to directors, inter-corporate loans and investments, and related party transactions. Section 185 restricts loans by companies to directors and related parties. Section 186 sets limits on inter-corporate loans and investments up to 60% of capital and reserves. Section 188 requires board approval and shareholder approval for certain related party transactions above threshold values. Notifications have provided some exemptions for private companies. Non-compliance can result in fines and imprisonment for officers in default.
Section 188, 184 & 189 Related Party Transacions & RulesDwarkesh K. Diwan
This document discusses laws related to related party transactions under Section 188 of the Companies Act 2013. It provides details of:
- What types of transactions require board approval and shareholder approval. Board approval is needed for most related party transactions, while shareholder approval is required for larger transactions.
- Consequences if transactions are entered into without required approvals, including them being voidable and directors being liable to indemnify losses.
- Definitions of related party and relative according to the Companies Act.
- Additional rules specified by the Companies (Meetings of Board and its Powers) Rules, 2014 regarding related party transactions, including disclosure requirements.
Powers and Restrictions for companies to make Inter-Corporate Loans or Investments as per the provisions of Section 186 of the Companies Act, 2013 read with Rules 11 to 13 of Companies (Meeting of Board and its Powers) Rules, 2014
Loans & deposits as per new companies act 2013Raghav Madhavan
The document discusses the key changes in the Companies Act, 2013 regarding loans and deposits for companies. Some of the main points covered are:
1) Private companies can now only borrow from directors and financial institutions, removing shareholders and relatives of directors from the list of permitted lenders.
2) Strict limits are placed on accepting deposits, with private companies only allowed to accept from directors. Compliance with additional rules is required to accept deposits from non-directors.
3) Loans to directors and other interested parties are prohibited, with some exceptions. Shareholder approval is required if total borrowings exceed paid-up capital and reserves.
4) Strict rules also govern acceptance of deposits from the public, including
Section 186 of the Companies Act 2013 governs loans, investments, guarantees and security provided by companies. It places limits on such activities and requires prior approval if certain thresholds are exceeded. Companies must disclose full particulars of such transactions in their financial statements and maintain a register containing details of loans, guarantees, security and acquisitions. Certain exceptions apply for banks, insurance companies, housing finance companies and those principally engaged in financing or infrastructure activities. Contravention of this section may result in fines for the company and imprisonment for officers in default.
This document summarizes frequently asked questions about dividend distribution policies for listed companies in India. Key points include:
- The policy requirement applies to the top 500 listed companies by market capitalization.
- The purpose is to provide guidance for boards in declaring dividends and transparency to investors.
- The policy is not mandatory for debt listed companies or a replacement for the board's decision, but rather a reference point.
- Companies must tailor the policy to their specific circumstances and disclose any changes made.
Loan to Directors & Inter Corporate Loansbvcglobal
This document discusses loan provisions for directors and inter-corporate loans under the Companies Act 1956 and 2013.
It outlines that public companies and private subsidiaries of public companies cannot provide loans to directors without shareholder approval under Section 295 of the 1956 Act and Section 185 of the 2013 Act. It also describes restrictions on loans to firms/bodies where a director has interest.
The document also summarizes Sections 372A and 186 regarding inter-corporate loans, specifying approval requirements, exceptions, and penalties for non-compliance. It notes that board approval is sufficient if loan amounts do not exceed ceilings of 60% of capital/reserves or 100% of free reserves, otherwise shareholder approval is required.
This document summarizes Section 185 of the Companies Act, 2013 regarding loans to directors. It discusses the restrictions placed on companies from advancing loans or providing security to directors. It outlines two exceptions for loans to managing/whole-time directors or loans provided in the ordinary course of business. It also clarifies the meaning of "person in whom director is interested." Finally, it summarizes a circular clarifying that Section 372A exemptions still apply regarding guarantees by holding companies for subsidiaries until Section 186 is notified.
Companies act, 2013 related party transactionsRama Krishna
The document discusses key aspects of related party transactions under the Companies Act 2013. It provides definitions of related parties and related party transactions. It covers the rules around loans to directors and other persons. It also discusses the provisions around inter-corporate loans and investments including approval requirements, limits, exceptions and penalties. Key highlights include expanded definition of related parties, prohibition on loans to directors except in certain cases, limits on inter-corporate investments up to 60% of net worth without shareholder approval and maintaining a register of loans and investments.
Section 185 and 186 - Loans and Investments by CompanySaurabh Dugar
Investments by company - Section 185 and 186 of Companies Act, 2013
Procedural Aspects, carve outs, implication of violations, etc.
Have included the probe of the proposed changes of Companies (Amendment) Bill, 2016.
The document discusses various exemptions provided to private companies through a notification issued by the Ministry of Corporate Affairs on June 5, 2015. Some of the key exemptions for private companies include exemption from sections 43 & 47 relating to share capital, exemption from section 188(1) relating to related party transactions, reduced timelines for right issues, ability to purchase own shares subject to conditions, liberalized rules for accepting deposits from shareholders, and exemption from filing certain board resolutions with the registrar of companies. The notification aims to reduce compliance requirements for private companies to make them more efficient.
Exemptions to private companies under companies act 2013 impact analysisFCS BHAVIK GALA
The document discusses exemptions provided to private companies under the Companies Act 2013 that reduce compliance burdens. Key exemptions summarized are:
1) Private companies are exempt from filing board resolutions with the Registrar of Companies, reducing a significant compliance burden.
2) Private companies can purchase their own shares without a reduction in capital, subject to certain conditions like no other corporate investment and borrowing limits.
3) Private companies have flexibility in issuing shares with differential voting rights if allowed by memorandum and articles of association.
4) The definition of related party transactions excludes holding, subsidiary and associate companies for private companies, simplifying approval requirements.
The document discusses key provisions around inter-corporate loans, investments, guarantees and securities under the Companies Act.
1. It defines terms like "loan", "investment", and "free reserves".
2. It sets limits on the board's powers to approve loans/investments of 60% of paid-up capital and free reserves or 100% of free reserves without shareholder approval.
3. Shareholder approval by special resolution is needed for exceeding these limits. Notice to shareholders must provide details of the proposal, body corporate involved, funding sources, etc. No blanket approvals are allowed.
4. An exception exists for guarantees, where the board can exceed limits without
The document discusses recent changes in the Indian bond market that are expected to positively impact its growth. It outlines three key changes: 1) Mandating the use of an electronic book building mechanism for large bond issuances, improving transparency. 2) Allowing listed unsecured corporate bonds, expanding funding options. 3) Draft rules permitting foreign investors to invest in corporate bonds and securitized debt. Collectively, these regulatory changes aim to streamline the market and facilitate its further development.
This document provides an overview of different types of business organizations and structures in India. It discusses sole proprietorships, partnerships, private limited companies, public limited companies, and charitable organizations. For each type of structure, it outlines key defining features, advantages, disadvantages and regulations. It also covers topics like joint ventures, foreign direct investment rules in India, and how a foreign company can enter the Indian market through a liaison office, branch office, joint venture or wholly owned subsidiary.
Rules to follow to set up a Joint Venture with an Indian companyvakilsearch_tutorial
There are three common types of joint venture companies in India: 1) where one party transfers their business to a new company and receives shares, while the other party subscribes for shares in cash, 2) where both parties subscribe to shares in the new company in agreed proportions in cash to start a new business, 3) where an existing company collaborates with a third party who takes shares in the company through cash payment. Joint ventures are incorporated like private or public companies under Indian law. Key issues to address include foreign investment caps, agreement terms, director nominees, office location, and necessary approvals. The joint venture agreement should specify shareholding proportions, decision-making, management structure, funding, and dispute resolution
Research Methodology in Commerce- Corporate Bond Market in Indiapillai college
This document is a project report submitted by Sunita Kumari Yadav to the University of Mumbai for their Master of Commerce program. The project examines the corporate bond market in India, with the objective of analyzing its development and growth compared to other developed and Asian countries. It includes sections on the meaning and types of corporate bonds, the importance of corporate bond markets, the global scenario of corporate bond markets, and the current state and measures taken to develop the corporate bond market in India.
Companies Act, 2013 – certain privileges of private companies withdrawnD Murali ☆
The Companies Act, 2013 – Certain privileges of private companies withdrawn - by Dr S. Chandrasekaran
(Published in Business Advisor dated September 25, 2013)
The document analyzes changes to India's service tax relating to the 2015 Union Budget. Key changes include:
- The service tax rate is increased from 12% to 14%.
- Education and SHE cess are subsumed into the 14% tax rate.
- A new 2% Swachh Bharat cess will be imposed on taxable services, resulting in a total service tax rate of 16%.
- Various penalty provisions and rates are amended.
The secrets to avoiding penalties and fines - Perspectives of HR & FinanceAkash Mahagaonkar V
This is the presentation of 2nd Mini Conference as a part of Relativity's Knowledge Series program at Coimbatore & Bangalore. We introduced "Learning Via Gamification" via this program and was a great success. Participants learn real & live scenarios & nuances of compliance.
1) The document lists penalties under the Companies Act 2013 for various offences like not complying with rules for companies registered under section 8, not filing required documents on time, issuing shares at a discount, not maintaining proper registers, and more.
2) Penalties for companies range from fines from Rs. 10,000 to Rs. 10 crores depending on the severity of the offence. Officers in default can also be penalized with fines from Rs. 25,000 to Rs. 2 crores and imprisonment in some cases.
3) Repeated offences are subject to additional daily penalties until compliance. Some offences are also compoundable (able to be settled by paying a fine).
Amendments in Schedule III of Companies Act, w.e.f. 1st April 2022taxguru5
"CA Pragathi Gudur* With the ever-increasing stringency in the regulatory framework and disclosure requirements under various provisions of law, MCA, vide notifi"
TaxGuru is a platform that provides Updates On Amendments in Income Tax, Wealth Tax, Company Law, Service Tax, RBI, Custom Duty, Corporate Law , Goods and Service Tax etc.
To know more visit https://taxguru.in/company-law/amendments-schedule-iii-companies-act-w-e-f-1st-april-2022.html
The new SEBI listing regulations replace the previous listing agreement and aim to increase transparency through additional disclosures on key events like acquisitions and family agreements. The regulations divide requirements into substantive provisions and procedural schedules. They cover periodic disclosures, corporate governance principles, and obligations for different security types. The regulations increase disclosures for related party transactions, unlisted subsidiaries, and board decisions. They also specify conditions for reclassifying promoters as public shareholders. The alignment with the Companies Act of 2013 removes ambiguities but increases compliance burden for listed companies.
The Chartered Accountants community of Auditors is being exposed to new challenges and expectations while they are finalizing audits for the Financial Year ending March 31, 2015. The new provisions will ensure that all the serious and committed professional Chartered Accountants gain substantially as the value of the Audit Report and its credibility will be much higher in the light of new responsibilities and Corporate Governance Mechanism.
FEMALE SECURITY - A MATTER OF MAJOR CONCERNNeha Sharma
The recent incidents in Delhi followed by the mass protests at India Gate and all across the nation have brought to light a major threat to safety and security of females in the country. The profession of Chartered Accountancy consists of a substantial number of female members and about 50% CA students are also female.
Section 94B of the Income Tax Act, 1961 places limitations on the deductibility of interest expenses for loans taken from associated enterprises. Some key points:
1. Interest expenses over INR 1 crore claimed as a deduction are restricted to 30% of earnings before interest, taxes, depreciation and amortization (EBITDA) or interest paid to the associated enterprise, whichever is lower.
2. Loans from third parties where the associated enterprise provides an implicit or explicit guarantee or deposits matching funds are deemed to be from the associated enterprise.
3. Disallowed interest can be carried forward for up to 8 years.
4. Key terms like associated enterprise, debt, and permanent establishment are defined
Amendments in Schedule III of Companies Act, w.e.f. 1st April 2022taxguru5
"CA Pragathi Gudur* With the ever-increasing stringency in the regulatory framework and disclosure requirements under various provisions of law, MCA, vide notifi"
TaxGuru is a platform that provides Updates On Amendments in Income Tax, Wealth Tax, Company Law, Service Tax, RBI, Custom Duty, Corporate Law , Goods and Service Tax etc.
To know more visit https://taxguru.in/company-law/amendments-schedule-iii-companies-act-w-e-f-1st-april-2022.html
Greetings
Union budget for FY 2018-19 was presented by Hon'ble Finance Minister Shri. Arun Jaitely . As most of you are aware, this budget is unique being presented before election in 2019
Key changes proposed in Companies Amendment, bill 2016Praveen Soni
The document proposes several amendments to the Companies Act 2013. Key changes include expanding the definition of key managerial personnel and related parties, allowing companies more flexibility in their memorandum of association, changing various filing timelines, easing restrictions on private placements and deposits, simplifying annual return filing, and making changes to director qualifications, loan provisions to directors, related party transactions, and managerial remuneration.
The document proposes several amendments to the Companies Act 2013. Some key changes include expanding the definition of key managerial personnel and related parties, allowing companies more flexibility in their memorandum of objects, changing timelines for various filings, reducing requirements for related party transactions, and amending provisions around loans to directors and managerial remuneration.
This document summarizes key issues under the Corporate Social Responsibility provisions in the Indian Companies Act of 2013. It discusses six main issues: 1) ambiguity around foreign companies having branches in India being required to conduct CSR, 2) exclusion of normal business activities from CSR, 3) burden on small companies, 4) non-penalty "comply or explain" approach to non-compliance, 5) uncertainty around tax deductibility of CSR expenses, and 6) ambiguity regarding implementing agencies for CSR activities. The document provides analysis of each issue through examples and discussion of related legal considerations.
The budget document summarizes key changes for salaried individuals, taxation of long term capital gains (LTCG), business income, international taxation, and miscellaneous items. For salaried taxpayers, deduction limits for medical expenses and interest income were increased. LTCG will now be taxed at 10% for gains over Rs. 1 lakh. Business income rules were expanded and tax rates increased for large companies. International tax provisions now include a broader definition of permanent establishment and taxing digital businesses based on economic presence in India. Various deductions and exemptions were also introduced or modified.
Disclosures in Board Report by Trupti Ranjan Mohanty.pptxssuser1b54031
Insights into Disclosures in Board Report: This includes all the broad disclosures required to be given in the Board Report of a Company under Companies Act, 2013 and SEBI Listing Regulations. Various cases/litigations have been referred to indicate the significance of each disclosure.
Budget 2016-2017 - analysis of direct tax proposalsoswinfo
This document provides an analysis of key changes proposed in the Indian Budget 2016 relating to direct taxes. Some key points summarized are:
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Compounding of offences under fema 1999Sooraj Nandan
This document provides information on compounding of contraventions under the Foreign Exchange Management Act (FEMA) 1999 in India. It discusses the regulatory framework under FEMA, introduction to compounding offenses, the compounding process, additional considerations in reviewing applications, criteria for disposing applications, compounding authorities and their powers, and documentation requirements. Key points include that compounding allows penalties to be paid to resolve FEMA violations, applications may be denied based on the nature of the contravention or if it is a repeat offense, and various RBI offices and directors have authority to compound offenses of different amounts.
Similar to Liabilities of Directors under the Companies Act of India (20)
Anil Chawla Law Associates LLP is a law firm based in India. We add value to business. We help startups and MSMEs grow and prosper.
We help through every life-cycle-stage of a small / medium enterprise.
Supporting promoters with creativity, vision, empathy and wisdom is our speciality.
We help Indian entrepreneurs form entities abroad. We also assist foreign companies to enter India.
We help design global structure for visionary Indians with dreams.
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We combine entrepreneur's perspective with legal expertise and engineer's analytical approach.
Our clients are spread across the globe. We are always near you wherever in the world you may be.
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Seeing your business grow and prosper is our passion.
Senior Partner - Advocate Anil Chawla, Bachelor of Technology (Mech. Eng.) from Indian Institute of Technology Bombay; Master of Laws (Corporate & Commercial Law);
Bachelor of Laws, Insolvency Professional;
Author of many articles and books. Public Speaker.
Partner - Advocate Yogita Pant, Bachelor of Arts (Management); Master of Personnel Management; Master of Laws (Corporate & Commercial Law);
Bachelor of Laws, Insolvency Professional
This Guide is intended to help every Hindu whether living in India or outside India to prepare a Will. While the primary focus is on Indian law, it also takes into account essentials of international private law. Written in simple language free of legalese, it gives an overview of Wills for an educated Hindu without any legal knowledge.
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Decriminalization of Doing Business in India – Cheque BouncingAnil Chawla
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Liabilities of Directors under the Companies Act of India
1. Fourth Edition – March 2021
First Edition – August 2015
Anil Chawla Law Associates LLP
www.indialegalhelp.com
This Presentation gives only an indication of the various provisions related to penalties and punishments for Directors under The
Companies Act, 2013 of India. It is not intended to be either complete or exhaustive narration of the subject.
Anil Chawla Law Associates LLP is registered with limited liability and bears LLPIN AAA-8450.
This Presentation is an academic exercise. It does not offer any advice or suggestion to any individual or firm or company. While all
efforts have been made to ensure accuracy and correctness of information provided, no warranties / assurances are provided or
implied. Readers are advised to consult a Legal Professional / Company Secretary / Chartered Accountant before taking any business
decisions. Anil Chawla Law Associates LLP does not accept any liability, either direct or indirect, with regard to any damages /
consequences / results arising due to use of the information contained in this Presentation.
Copyright – Anil Chawla Law Associates LLP, 2021
2. Companies Act, 2013 (the Act) used to be a Draconian
law which has been substantially softened after the
amendments introduced vide The Companies
(Amendment) Act, 2020 (effective from 29th September
2020).
Anti-business bias is apparent even after the softening.
Duties, penalties and punishments continue to be
extremely stringent.
March 2021 www.indialegalhelp.com 2
3. A1. Officer
A2. Manager
A3. Managing Director
A4. Key Managerial Personnel
A5. Officer in Default
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8. A5. Officer in Default
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Section 2(60)
9. A5. Officer in Default (Continued)
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Section 2(60)
10. B1. Duties of Directors
B2. Disqualification to be a Director
B3. Cognizable Offences with No Bail
B4. Protection of Independent Directors
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11. B1. Duties of Director
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12. B1. Duties of Director (Continued)
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Section 166
18. Chapter II – Incorporation of Company and
Matters Incidentals Thereto
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Note:
Rs. 1 Lakh = Rs. 100,000 = Rs. 0.1 million
Rs. 1 Crore = Rs. 10,000,000 = Rs. 10 million
Section
No.
Short Description of Offence Penalty for Company Penalty for Officer in Default
Punishment -
Imprisonment
Applicability of
Punishment
10A Filing of Declaration for
commencement of business
Rs. 50,000- Rs. 1,000 per day;
maximum Rs. 1 Lakh
NIL Not Applicable
17 Supply to Member of Copies of
Memorandum, Articles and
Agreements 117(1)
Rs. 1,000 per day;
maximum Rs. 1 Lakh
Rs. 1,000 per day;
maximum Rs. 1 Lakh
NIL Not Applicable
19. Chapter III – Prospectus & Allotment of Securities
19
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Section
No.
Short Description of Offence Penalty for Company Penalty for Officer in Default
Punishment -
Imprisonment
Applicability of
Punishment
26 Prospectus Minimum Rs. 50,000;
Maximum Rs. 3 Lakhs
Minimum Rs. 50,000;
Maximum Rs. 3 Lakhs
NIL Not Applicable
35 Damage from misleading
prospectus
NIL Compensation without any
limitation to liability
NIL Not Applicable
36 Fraudulently inducing to invest
or lend
NIL As per Section 447 As per Section
447
Person fraudulently
inducing
40 Permission from Stock
Exchange before offering
securities to public
Minimum Rs. 5 Lakhs;
Maximum Rs. 50 Lakhs
Minimum Rs. 50,000; Maximum
Rs. 3 Lakhs
NIL Not Applicable
42 (9) Rs. 1,000 per day; maximum
Rs. 25 Lakhs
Rs. 1,000 per day; maximum
Rs. 25 Lakhs
42 (10) Amount Involved in Offer or
Rs. 2 Crores, whichever is lower
+ Refund of amount collected
with interest
Amount Involved in Offer or
Rs. 2 Crores, whichever is lower
+ Refund of amount collected
with interest
Private Placement NIL Not Applicable
20. Chapter IV – Share Capital & Debentures
20
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Section
No.
Short Description of Offence Penalty for Company Penalty for Officer in Default
Punishment -
Imprisonment
Applicability of
Punishment
46 Issue of duplicate shares with
intent to defraud
Not less than 5 times value of
shares; Max. 10 times value of
shares or Rs. 10 Crores,
whicever is higher
As per Section 447 As per Section
447
Officer in default
53 Issue of Shares at a Discount NIL Not Applicable
56 Transfer of Shares Rs. 50,000 Rs 50,000 NIL Not Applicable
Amount raised through issue of shares at a discount or Rs. 5
Lakhs whichever is less and refund by company of all monies
along with interest of 12%
21. Chapter IV – Share Capital & Debentures (Continued)
21
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Section
No.
Short Description of Offence Penalty for Company Penalty for Officer in Default
Punishment -
Imprisonment
Applicability of
Punishment
60 Mentioning Authorized Capital
and not mentioning paid-up
capital
Rs. 10,000 Rs. 5,000 NIL Not Applicable
64 Informing Registrar about
alteration of share capital
Rs 500 per day, subject to max
of Rs 5 lakhs
Rs 500 per day subject to max
of Rs. 1 lakh
NIL Not Applicable
67* Reduction of Share Capital and
giving loans to persons for
buying shares of the company
Minimum Rs. 1 Lakh; Maximum
Rs. 25 Lakhs
Minimum Rs. 1 Lakh; Maximum
Rs. 25 Lakhs
Up to 3 years Officer in default
68 Purchase by company of its own
securities
Minimum Rs. 1 Lakh; Maximum
Rs. 3 Lakhs
Minimum Rs. 1 Lakh; Maximum
Rs. 3 Lakhs
NIL Not Applicable
* Not applicable to Private companies in which no corporate has invested in share capital; Debt less than two times equity or Rs. 50 crores; No default in
repayment to banks / financial institutions
22. Chapter V – Acceptance of Deposits
22
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Section
No.
Short Description of Offence Penalty for Company Penalty for Officer in Default
Punishment -
Imprisonment
Applicability of
Punishment
74 Failure to repay the deposit
after order by Tribunal
Minimum Rs. 1 Crore; Maximum
Rs. 10 Crores (in addition to
repayment of principal +
interest)
Minimum Rs. 25 Lakhs;
Maximum Rs. 2 Crores
Up to 7 years Officer in default
75 Acceptance of deposits with
intention to defraud (after
default under sec. 74)
NIL NIL In addition to under
sec. 74,
punishment under
sec. 447
Officer responsible
for accepting deposit
23. Chapter VI – Registration of Charges
23
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Section
No.
Short Description of Offence Penalty for Company Penalty for Officer in Default
Punishment -
Imprisonment
Applicability of
Punishment
86(1) Contravention of any of the
provisions of the Chapter
Rs. 5 lakhs Rs. 50,000 NIL Not Applicable
86(2) Furnishing false information or
suppression of facts in relation
to registering of charges
NIL NIL As provided in
Section 447
Officer in default
24. Chapter VII – Management & Administration
24
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Section
No.
Short Description of Offence Penalty for Company Penalty for Officer in Default
Punishment -
Imprisonment
Applicability of
Punishment
88 Failure to maintain Register of
Members
Rs. 3 Lakhs Rs. 50,000 NIL Not Applicable
90 Declaration of beneficial interest
of not less than 25 per cent in a
company
NIL Rs. 50,000+1,000 for each day
of delay subject to a maximum
of Rs. 2 lakhs
NIL Not Applicable
91 Closing of Register of Members
without proper notice or longer
than prescribed
Rs. 5,000 per day subject to a
maximum of Rs. 1 Lakh
Rs. 5,000 per day subject to a
maximum of Rs. 1 Lakh
NIL Not Applicable
92 Delay in filing Annual Return
beyond period specified for
additional fee
Rs. 10,000+ Rs. 100 each day
subject to Rs. 2 lakh
Rs 10,000 + Rs 100 for each
day of default subject to a max
of Rs. 50,000
NIL Not Applicable
94 Refusing to a member
inspection of Register of
Members or Annual Return
Rs. 1,000 per day subject to a
maximum of Rs. 1 Lakh
Rs. 1,000 per day subject to a
maximum of Rs. 1 Lakh
NIL Not Applicable
99 Default in holding Annual
General Meeting
Maximum Rs. 1 Lakh +
Rs. 5,000 per day
Maximum Rs. 1 Lakh +
Rs. 5,000 per day
NIL Not Applicable
102* Statement giving material facts
about special business at a
General Meeting
NIL Up to Rs. 50,000 or five times the
benefit to the promoter / director /
manager / KMP / relative.
Whichever is more
NIL Not Applicable
* Sec. 101-107 apply in case of private company unless otherwise specified in respective sections or Articles of Association of the company
25. Chapter VII – Management & Admin. (Continued)
25
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Section
No.
Short Description of Offence Penalty for Company Penalty for Officer in Default
Punishment -
Imprisonment
Applicability of
Punishment
105* Voting by proxy / Invitation by
company to appoint a person as
proxy
NIL Rs. 50,000 NIL Not Applicable
111 Failure to circulate a resolution
moved by members
Rs. 25,000 Rs. 25,000 NIL Not Applicable
117 Delay in filing of special resolution
and some resolutions passed by
Board of Directors beyond period
with additional fees
Rs. 10,000+Rs 100 for each
day subject to a maximum of
Rs. 2 lakhs
10,000+Rs 100 for each day,
subject to a maximum of
Rs. 50,000
NIL Not Applicable
118 Minutes of meetings of Board or
Members or Committee of
Board
Rs. 25,000- Rs. 5,000- Up to 2 years +
Fine Rs. 25,000
to Rs. 1 Lakh
Anyone tampering
with the minutes of
Board meeting
119 Refusal to a member to inspect
Minutes Book of General
Meeting
Rs. 25,000- Rs. 5,000- NIL Not Applicable
121** Delay in Filing of Report on
AGM beyond the specified
period with additional fees
Rs. 1 lakh+ Rs 500 each day
subject to maximum of Rs 5
lakhs
Minimum Rs. 25,000; Rs. 500
per day of delay Maximum Rs.
1 Lakh
NIL Not Applicable
** Applicable only to listed public companies
* Sec. 101-107 apply in case of private company unless otherwise specified in respective sections or Articles of Association of the company
26. Chapter VIII – Declaration & Payment of Dividend
26
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Section
No.
Short Description of Offence Penalty for Company Penalty for Officer in Default
Punishment -
Imprisonment
Applicability of
Punishment
124 Unpaid Dividend Account Rs. 1 lakh ; Rs. 500 for each
day of delay; Max 10 lakh
Rs. 25,000 ; Rs 100 for each
day of delay; Max Rs 2 lakh
NIL Not applicable
127 Failure to distribute dividends Simple Interest at the rate of
18% per annum
Rs. 1,000 per day of default Up to 2 years Director who is
knowingly a party to
the default
27. Chapter IX – Accounts of Companies
27
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Section
No.
Short Description of Offence Penalty for Company Penalty for Officer in Default
Punishment -
Imprisonment
Applicability of
Punishment
128 Maintaining books of accounts NIL Minimum Rs. 50,000; Maximum
Rs. 5 Lakhs
NIL NOT Applicable
129 Preparing Financial Statements
as per Accounting Standards
and Schedule III
NIL Minimum Rs. 50,000; Maximum
Rs. 5 Lakhs
Up to 1 year MD, Whole Time
Director Finance,
CFO or any person
charged with this
duty; And in the
absence of any of
the above, all the
directors
134 Board's approval of Financial
Statements and Directors
Report
Rs. 3 lakhs Rs 50,000 NIL Not applicable
136 Sending audited financial
statement to members
Rs. 25,000- Rs. 5,000- NIL Not applicable
137 Sending Financial Statements to
Registrar
Rs 10,000; Rs. 100 for each day
of delay; Max Rs 2 lakhs
Rs 10,000; Rs. 100 for each day
of delay; Max Rs. 50,000
NIL Not applicable
28. Chapter X – Audit and Auditors
28
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Section
No.
Short Description of Offence Penalty for Company Penalty for Officer in Default
Punishment -
Imprisonment
Applicability of
Punishment
140 Filing information about
resignation to be filed by auditor
NIL Auditor to pay Rs. 50,000 or
remuneration of the auditor,
whichever is less + Rs. 500 /
day; Maximum Rs. 2 Lakhs
NIL Not Applicable
147(1) Not less than Rs. 25,000; May
extend to Rs. 500,000
Not less than Rs. 10,000; May
extend to Rs. 100,000
NIL Not Applicable
147(2) Minimum Rs. 25,000; Maximum
Rs. 5 Lakhs or four times the
remuneration of the auditor,
whichever is less
Minimum Rs. 50,000 or
Rs. 25 Lakhs or eight times the
remuneration of the auditor,
whichever is less
NIL Not Applicable
Contravention of any of the
provisions related to audit and
auditors
29. Chapter XI – Appointment & Qualification of Directors
29
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Section
No.
Short Description of Offence Penalty for Company Penalty for Officer in Default
Punishment -
Imprisonment
Applicability of
Punishment
157 Failure to furnish DIN of a
Director
Rs 25,000, Rs 100 per day of
delay, Max Rs 1 lakh
Minimum Rs. 25,000; Rs. 100
per day of delay,
Maximum Rs. 1 Lakh
NIL Not Applicable
159 Defaults under sec. 152, 155
and 156 related to DIN and
such matters
NIL Maximum Rs. 50,000 + futher
Rs. 500 per day for continuing
default
NIL Not Applicable
165 Acting as Director in more than
20 companies
NIL Rs. 2,000 per day of default
subject to maximum of
Rs. 2 Lakhs
NIL Not Applicable
166 Duties of a Director NIL Rs 2,000 per day of default;
Max Rs. 2 lakh
NIL Not Applicable
167 Functioning as Director even
after the post has become
vacant
NIL Minimum Rs. 1 Lakh; Maximum
Rs. 5 Lakh
NIL Not Applicable
172 Violation of any provisions of the
chapter where no specific
punishment is provided
Rs, 50,000 ; Rs 500 for each
day of default; Max 3 lakh
Rs, 50,000 ; Rs 500 for each
day of default; Max 1 lakh
NIL Not Applicable
30. Chapter XII – Meetings of Board & Its Powers
30
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Section
No.
Short Description of Offence Penalty for Company Penalty for Officer in Default
Punishment -
Imprisonment
Applicability of
Punishment
177 &
178
Audit Committee, Remuneration
Committee and Stakeholders
relationship Committee
Rs. 5 Lakhs Rs. 1 lakh NIL Not Applicable
184 Disclosure of Interest by
Director and not participating in
meetings when related
transactions discussed
NIL Rs. 1 lakh NIL Not Applicable
185* Prohibition on loans, guarantee,
security to Directors and firms
in which Directors are interested
Minimum Rs. 5 Lakhs;
Maximum Rs. 25 Lakhs
Minimum Rs. 5 Lakhs;
Maximum Rs. 25 Lakhs
Up to 6 months Director or person
who benefits
186 Loans and Investment in other
companies
Minimum Rs. 25,000; Maximum
Rs. 5 Lakhs
Minimum Rs. 25,000; Maximum
Rs. 1 Lakh
Up to 2 years Officer in default
187 Investments to be held in
company's name
Rs. 5 lakhs Rs. 50,000 NIL Not Applicable
* Not applicable to Private companies in which no corporate has invested in share capital; Debt less than two times equity or Rs. 50 crores; No default in
repayment to banks / financial institutions
31. Chapter XII – Meetings of Board (Continued)
31
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Section
No.
Short Description of Offence Penalty for Company Penalty for Officer in Default
Punishment -
Imprisonment
Applicability of
Punishment
188 Related Party Transactions NIL Listed company- Rs 25 lakhs
Other company- Rs 5 lakhs
NIL Not Applicable
189 Register of Transactions under
sec. 184 or 188 to be signed by
all Directors
NIL Rs. 25,000- NIL Not Applicable
190** Register of Contract with MD or
Wholetime Director
Rs. 25,000 Rs. 5,000 NIL Not Applicable
191 Payment to Director for loss of
office or transfer of property
NIL Rs. 1 Lakh NIL Not Applicable
** Not applicable in case of private companies
32. Chapter XIII – Appointment & Remuneration of
Managerial Personnel
32
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Section
No.
Short Description of Offence Penalty for Company Penalty for Officer in Default
Punishment -
Imprisonment
Applicability of
Punishment
197 Maximum Managerial
Remuneration
Rs. 5 Lakh Rs. 1 Lakh NIL Not Applicable
203 Whole-time Key Managerial
Personnel to be appointed
necessarily
Rs. 5 Lakhs Rs. 50,000 + Rs. 1,000 per day
of continuing default, Maximum
Rs. 5 Lakhs
NIL Not Applicable
204 Secretarial Audit Rs. 2 lakhs Rs. 2 lakhs NIL Not Applicable
33. Chapter XIV – Share Capital & Debentures
33
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Section
No.
Short Description of Offence Penalty for Company Penalty for Officer in Default
Punishment -
Imprisonment
Applicability of
Punishment
206(4) Business of company being
carried out for fraudulent or
unlawful purpose
NIL NIL As provided in
Section 447
Officer in default
206(7) Failure to furnish any
information or explanation or
document required by Registrar
Up to Rs. 1 Lakh + Rs. 500 per
day of continuing default
Up to Rs. 1 Lakh + Rs. 500 per
day of continuing default
NIL Not Applicable
207 /
217(6)
Disobeying direction issued by
Registrar or Inspector
NIL Minimum Rs. 25,000; Maximum
Rs. 1 Lakh
Up to 1 year +
Immediate removal
and disqualification
from holding any
office in any
company
Any Director or
officer
217(8) Failure to provide information or
documents to Inspector
NIL Minimum Rs. 25,000; Maximum
Rs. 1 Lakh + Rs. 2,000 per day
Up to 6 months Any person
34. Chapter XIV – Share Cap. & Debentures (Continued)
34
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Section
No.
Short Description of Offence Penalty for Company Penalty for Officer in Default
Punishment -
Imprisonment
Applicability of
Punishment
213 Company conducted with
fraudulent intent or person
involved with forming or
conducting guilty of fraud
NIL NIL As provided in
Section 447
Officer in default and
persons involved in
formation or
management
232 Contravention of provisions
related to mergers and
acquisitions
Rs. 20,000 + Rs. 1,000 per day
of default; Maximum Rs. 3
Lakhs
Rs. 20,000 + Rs. 1,000 per day
of default; Maximum Rs. 3
Lakhs
NIL Not Applicable
238 Registration of offer of schemes
involving transfer of shares
NIL Rs. 1 Lakh NIL Director
35. Chapter XVI – Prevention of Oppression &
Mismanagement
35
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Section
No.
Short Description of Offence Penalty for Company Penalty for Officer in Default
Punishment -
Imprisonment
Applicability of
Punishment
242 Not complying with order of
Tribunal
Minimum Rs. 1 Lakhs;
Maximum Rs. 25 Lakhs
Minimum Rs. 25,000; Maximum
Rs. 1 Lakh
NIL Not Applicable
243 Contravention of order of
Tribunal
Maximum Rs. 5 Lakhs Maximum Rs. 5 Lakhs NIL Not Applicable
245 Not complying with order of
Tribunal in relation to Class
Action
Minimum Rs. 5 Lakhs;
Maximum Rs. 25 Lakhs
Minimum Rs. 25,000; Maximum
Rs. 1 Lakh
Up to 3 years Officer in default
36. Chapter XX – Winding Up
36
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March 2021
Section
No.
Short Description of Offence
Penalty for
Company
Penalty for Officer in Default
Punishment -
Imprisonment
Applicability of
Punishment
336 Concealment, misrepresentation
and fraud etc.
NIL Minimum Rs. 1 Lakh; Maximum
Rs. 3 Lakh
Minimum 3
years, Up to 5
years
Any person who has
been an officer of the
company being
wound up
337 Inducing to give credit to
company later wound up or
concealing or removing property
NIL Minimum Rs. 1 Lakh; Maximum
Rs. 3 Lakh
Minimum 1 year,
Up to 3 years
Any person who was
an officer at the time
338 Not keeping proper books of
account for two years preceding
winding up
NIL Minimum Rs. 1 Lakh; Maximum
Rs. 3 Lakh
Minimum 1 year,
Up to 3 years
Officer in default
339 Fraudulent conduct of business NIL Personally liable without any
limitation of liability
As provided
under sec. 447
Any person who is
knowingly a party
344 Every invoice or order or
business letter to carry that the
company is being wound up
Minimum Rs.
50,000; Maximum
Rs. 3 Lakh
Minimum Rs. 50,000; Maximum
Rs. 3 Lakh
NIL Not Applicable
347 Contravention of order related
to disposal of books etc. of
company wound up
NIL Up to Rs. 50,000- NIL Not Applicable
37. Chapter XXVIII – Special Courts
37
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March 2021
Section
No.
Short Description of Offence
Penalty for
Company
Penalty for Officer in Default
Punishment -
Imprisonment
Applicability of
Punishment
441
Failure to comply with order
by Tribunal related to
compounding
NIL Twice the penalty specified
in such provisions
NIL NIL
446B
Lesser penalties for One
Person Companies or small
companies
Minimum Penalty:
One half of penalty
specified in such
provisions; Maximum-
2 lakh rupees
Minimum Penalty-One half
of penalty specified in such
provisions; Maximum- 1 lakh
rupees
NIL NIL
38. Chapter XXIX – Miscellaneous
38
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March 2021
Section
No.
Short Description of
Offence
Penalty for Company Penalty for Officer in Default
Punishment -
Imprisonment
Applicability of
Punishment
Fraud of amount
MORE than Rs. 10
Lakhs or 1% of
company's turnover,
whichever is less -
Involving Public
Interest
NIL Not less than the amount of
fraud but may extend to three
times the amount of fraud
Not less than 6 months,
may be up to 10 years.
Fraud of amount LESS
than Rs. 10 Lakhs or
1% of company's
turnover, whichever is
less - NOT involving
Public Interest
NIL Maximum Rs. 50 Lakhs Maximum 5 Years
449 Giving false evidence
on oath
NIL Up to Rs. 10 Lakhs Not less than 3 years,
up to 7 years
Any person
450 Where no specific
punishment provided
in the Act
Rs 10,000; Rs 1,000
each day for each day of
contravention; Max Rs 2
lakh
Rs 10,000; Rs 1,000 each day
for each day of contravention;
Max Rs 50,000
NIL Not Applicable
447 Any person guilty of
fraud
39. Chapter XXIX – Miscellaneous (Continued)
39
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March 2021
Section
No.
Short Description of
Offence
Penalty for Company Penalty for Officer in Default
Punishment -
Imprisonment
Applicability of
Punishment
451 Repeat offence within
three years
Twice the amount of
fine provided for the
offence
Twice the amount of fine
provided for the offence
As provided for the
offence
As provided in the
relevant section
452 Wrongful holding of
cash or property
NIL Minimum Rs. 1 Lakh; Maximum
Rs. 5 Lakhs
Up to 2 years Officer or employee
454 Non-payment of
penalty
Minimum Rs. 25,000;
Maximum Rs. 5 Lakhs
Minimum Rs. 25,000; Maximum
Rs. 1 Lakh
Up to 6 months Officer in default
454A Penalty for repeared
default within 3 years
of the order for penalty
imposed
Twice the amount of
the penalty provided
Twice the amount of the penalty
provided
NIL NIL
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